Reweight Without Reweights (using cumulative deviation)

[Bruno]

@Eswak

• Uniswap is the reason why algo stablecoins can’t maintain the peg and how to fix it | by SaÐertøøth | Medium
• Uniswap is not the reason why algo stablecoins can’t maintain the peg — incentives are. | by 0xScotch | Malt Protocol | Medium

Great articles!

Why not using Balancer instead of Uniswap? Let a permanent Dutch auction there starting at the current FEI mkt price and with the maximum price of $1.

More on this idea:

Auction to Buy FEI - Smart Use for ETH Reserves

From discussions with @Matthew_Graham: Proposal Create a Balancer Smart Pool with FEI and ETH. FEI starting price can be the Uniswap last price (let say the equivalent of $ 0.80). Arb bots would buy FEI cheap via uniswap pool and sell FEI for ETH in Balancer. Using Balancer, PCV will be buying FEI with ETH at a price below $1. Starting with the price of Uniswap let say 0.8. The price of FEI on the Balancer will be going up as time passes until it reaches 1.00. The dutch auction. The pool weig…